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City approves $10 million contract amid performance concerns

September 12, 2024 | Rio Rancho, Sandoval County, New Mexico


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City approves $10 million contract amid performance concerns
In a recent government meeting, officials discussed a significant amendment to a contract valued at $8.6 million, which includes performance penalties for the contractor if certain standards are not met. The amendment will result in an approximate increase of $1,062,629.61, prorated for the first year starting December 1. By July 1 of the following year, the total contract value will rise to $10,598,668, up from the current price of $8,936,038.51.

The changes to the contract were primarily driven by the need for quicker response times in addressing line issues, which have become more frequent in the city. This adjustment aims to enhance collaboration between the city’s crews and Comcast, facilitating faster identification and resolution of line problems.

During the meeting, officials clarified that the contract, originally set for five years, has been extended to a ten-year term with annual approvals. This structure allows for the amortization of necessary equipment costs over the contract's duration. Importantly, a clause remains in the contract that permits either party to terminate the agreement with appropriate notice if performance standards are not met.

The council moved forward with a motion to approve the contract amendment, which is tied to a budget adjustment for the current fiscal year to accommodate the increased costs. No public comments were made on the item, and the council expressed support for the proposed changes.

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